Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-006
Type of finding: Material weakness in internal control and material noncompliance
Federal program: Medical Student Education, Assistance Listing No. 93.680
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Medical Student Education Program, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Medical Student Education Program, we noted 3 expenditures totaling $105,643 of our
sample of 40 expenditures totaling $556,930 were not paid prior to the reimbursement request.
Additionally, we noted 2 draws of our sample of 13 where the draw was over drawn. The total overdraw
was $69,800 of the total cash draws tested of $3,945,157. Additionally, we noted 9 draws were not
supported by a detail of expenditures that reconciled. The variance difference was $48,745.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$246 related to interest on the over draw
$48,745 related to unreconciled variances between the cash draw and the expenditure detail
$48,991 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-008
Type of finding: Significant deficiency in internal control
Federal program: COVID-19 Education Stabilization Fund, Higher Education Emergency Relief
Fund, Assistance Living No. 84.425F
Federal agency: US Department of Education
Pass-through entity: Not applicable
Federal award year: May 7, 2020 to June 30, 2023
Compliance Requirement: Procurement and Suspension and Debarment
Criteria
UAMS follows the State of Arkansas purchasing policies and procedures. Competitive Bid Quote
Purchases ($20,000 to $75,000) require the requestor to price the good/service being purchased with at
least three vendor quotes. Amounts less than $20,000 require one vendor quote.
2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions
of the Federal award. Effective internal controls should include procedures to comply with the State of
Arkansas purchasing policies and procedures.
Condition
During our test work over the Education Stabilization Fund, Higher Education Emergency Relief Fund
program, we identified one of 17 procurements where only one vendor quote was obtained when the
purchase amount was approximately $21,400.
Cause
The original quote was less than $20,000 resulting in the requestor only obtaining the one quote as allowed
per the State of Arkansas procurement policies. Upon final invoicing for the service, the price exceeded
$20,000 and the requestor did not go back and amend the documentation with a sole source form
explaining the circumstances and obtaining appropriate approvals for the increased price.
Effect
Failure to properly document procurements could result in noncompliance with the State of Arkansas
procurement policies and procedures and/or the use of an inappropriate vendor.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure the State of
Arkansas procurement policies and procedures are adhered to in the event the original vendor cost
increases resulting in the procurement requiring additional justification/documentation.
View of responsible officials
In April 2022, a restructure of the procurement team was completed, and a new APO was appointed. In
July 2022, UAMS implemented a new financial system and updated procedures and processes around
procurement contracting. The new system allows all documents to remain as attachments in the system
and available to reviewers and approvers at each step in the procurement process. Staff dedicated to
procurement contracting have been trained to ensure all required documents are provide in accordance
with State procurement laws.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-008
Type of finding: Significant deficiency in internal control
Federal program: COVID-19 Education Stabilization Fund, Higher Education Emergency Relief
Fund, Assistance Living No. 84.425F
Federal agency: US Department of Education
Pass-through entity: Not applicable
Federal award year: May 7, 2020 to June 30, 2023
Compliance Requirement: Procurement and Suspension and Debarment
Criteria
UAMS follows the State of Arkansas purchasing policies and procedures. Competitive Bid Quote
Purchases ($20,000 to $75,000) require the requestor to price the good/service being purchased with at
least three vendor quotes. Amounts less than $20,000 require one vendor quote.
2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions
of the Federal award. Effective internal controls should include procedures to comply with the State of
Arkansas purchasing policies and procedures.
Condition
During our test work over the Education Stabilization Fund, Higher Education Emergency Relief Fund
program, we identified one of 17 procurements where only one vendor quote was obtained when the
purchase amount was approximately $21,400.
Cause
The original quote was less than $20,000 resulting in the requestor only obtaining the one quote as allowed
per the State of Arkansas procurement policies. Upon final invoicing for the service, the price exceeded
$20,000 and the requestor did not go back and amend the documentation with a sole source form
explaining the circumstances and obtaining appropriate approvals for the increased price.
Effect
Failure to properly document procurements could result in noncompliance with the State of Arkansas
procurement policies and procedures and/or the use of an inappropriate vendor.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure the State of
Arkansas procurement policies and procedures are adhered to in the event the original vendor cost
increases resulting in the procurement requiring additional justification/documentation.
View of responsible officials
In April 2022, a restructure of the procurement team was completed, and a new APO was appointed. In
July 2022, UAMS implemented a new financial system and updated procedures and processes around
procurement contracting. The new system allows all documents to remain as attachments in the system
and available to reviewers and approvers at each step in the procurement process. Staff dedicated to
procurement contracting have been trained to ensure all required documents are provide in accordance
with State procurement laws.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-005
Type of finding: Material weakness in internal control and noncompliance
Federal program title: COVID-19 - HRSA COVID-19 Claims Reimbursement for the
Uninsured Program and the Covid-19 Coverage Assistance Fund,
Assistance Listing No. 93.461
Federal agency: U.S. Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Charges to the HRSA COVID-19 Uninsured Program must adhere to the applicable terms and conditions of
the award. As described in the terms and conditions of the HRSA COVID-19 Uninsured Program federal
award, services not covered by traditional Medicare will not be covered under this program and services for
any treatment without a COVID-19 primary diagnosis are excluded, except for 1) pregnancy when the
COVID-19 diagnosis code may be listed as secondary; 2) hospice services; and 3) outpatient prescription
drugs.
Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and
maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and
the terms and conditions of the federal award.
Conditions Found
We selected a sample of 60 patient samples that had claims and payments from HRSA totaling
$1,311,291. We noted 3 patients from our sample that had claims and payments from HRSA totaling
$7,615 for which services for treatment did not meet the COVID-19 primary diagnosis criteria, and therefore
were considered unallowable activities.
Additionally, UAMS did not have adequate internal controls to ensure accurate diagnosis codes were
documented for the non-COVID-19 related services provided.
Cause
In discussing these conditions with UAMS, they stated that claims were not appropriately allocated
between reimbursable COVID-19 tests and non-reimbursable visits using a non-COVID-19 primary
diagnosis code and these claims were not effectively reviewed prior to submission to HRSA.
Effect
Failure to properly allocate services and use the proper diagnosis codes could result in unallowable
activities under the HRSA COVID-19 Uninsured Program.
Known questioned costs
$7,615
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management review its current process for entering and reviewing diagnosis codes to
ensure proper diagnosis codes are documented for all services in accordance with the federal award
programs terms and conditions.
View of responsible officials
We concur with the finding. Fiscal year 2021 was the first time UAMS received funds for patient
reimbursements through a Federal program that was required to be reported on the SEFA. The fiscal year
2021 expenditures were audited during fiscal year 2023, at the same time fiscal year 2022 expenditures
were audited. The same exception was noted across both years and reported to management after the
close of fiscal year 2022. The HRSA program ended and UAMS is no longer billing for these services. The
charges and billing for the HRSA program was a very unique set of circumstances due to the pandemic. In
the future, if such a program were available that required a review of diagnosis against a certain set of
treatment and diagnostic charges, further program development of the IT systems will be put into place or a
manual review will be developed and implemented.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-001
Type of finding: Material weakness in internal control and noncompliance
Federal program: Research and Development Cluster – various Assistance Listing numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Research and Development Cluster, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Research and Development Cluster, we noted 7 expenditures that totaled $4,061 of our
sample of 40 expenditures that totaled $95,703 were not paid prior to the reimbursement request.
Additionally, we noted 7 draws of our sample of 25 where the draw was over drawn. The total overdraw
was $20,298 of the total cash draws tested of $601,919. Additionally, we noted 3 draws were not supported
by a detail of expenditures that reconciled. The variance difference was $466.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$463 related to interest on the over draw
$466 related to unreconciled variances between the cash draw and the expenditure detail
$929 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Finding number: 2022-002
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Subrecipient monitoring
Criteria
The requirements for subrecipient monitoring are contained in Sections 200.330, .331, and .501(h) of Title
2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), 31 USC 7502(f)(2) (Single
Audit Act Amendments of 1996), Federal awarding agency regulations, and the terms and conditions of the
award.
When a pass-through entity (PTE) transfers awards to a subrecipient, the PTE must monitor the activities
of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies
with the terms and conditions of the subaward, and achieves performance goals.
Conditions Found
During our testwork over the Research and Development Cluster, we discovered that UAMS did not
appropriately monitor subrecipient activities. UAMS is obligated to monitor the activities of subrecipients,
including tracking subrecipient audits, requests, and other correspondence related to follow-up of corrective
action items. UAMS did not complete these procedures.
Cause
UAMS did not have the personnel capacity during FY22 to effectively monitor subawards.
Effect
Failure to properly monitor subrecipients may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
Questioned costs are not determinable. Amounts passed through to subrecipients in FY22 totaled
11,860,890.
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that UAMS ensures the subrecipient monitoring compliance requirements are performed.
View of responsible officials
We concur with the finding. Due to staffing shortages and the implementation of a new financial system, we
were unable to perform certain procedures related to subrecipient monitoring during the fiscal year.
Management is hiring a new staff member who will be dedicated to ensure all activities related to
subrecipient monitoring are in compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-003
Type of finding: Material Weakness in internal control
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
and Period of Performance
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), management must maintain several
review procedures to ensure the grant program is operating as expected and all control and compliance
procedures are being followed.
Conditions Found
The engagement team evaluated two internal control deficiencies that were identified during our audit
procedures. These deficiencies arose due to a lack of management review of the compliance and control
requirements for the program related to allowable costs – facilities and administration charges and period
of performance.
Cause
During FY22, UAMS was working on the transition of enterprise systems away from SAP to Workday. This
caused numerous constraints on the UAMS team and caused some controls, such as management review,
to be overlooked. The UAMS team lacked the capacity to appropriately review all aspects of their
processes related to allowable costs – facilities and administration charges and period of performance.
Effect
Failure to properly perform management review of compliance requirements may prevent UAMS from
being in compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
None
Statistical Sample
Not applicable
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management perform detailed review of all compliance requirements to ensure proper
controls are in place and operating effectively and to help ensure compliance with program compliance
requirements.
View of responsible officials
During the fiscal year, the grants accounting office experienced a significant turnover in staff and leadership
in addition to implementing a new financial system. With the new director and staff in place and completing
the implementation of the financial system, we believe adequate controls have been established and are
working properly to ensure compliance with federal and program regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-004
Type of finding: Material weakness in internal control and material noncompliance
Federal program title: Research and Development Cluster – various Assistance Listing
numbers
Federal agency: Various
Pass-through entity: Various
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), costs must be adequately documented.
Conditions Found
We selected a sample of 40 expenditures totaling $121,033 to test activities allowed or unallowed and
allowable costs/cost principles of the total population of $11,464,188. We noted 2 samples totaling $512
where adequate documentation to support the expenditure was not maintained, and therefore were
considered unallowable.
Cause
UAMS did not maintain adequate support for each expenditure.
Effect
Failure to properly maintain adequate support for each expenditure may prevent UAMS from being in
compliance with the requirements set forth by the Uniform Guidance.
Known questioned costs
$512
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
support to adequately support expenditures is maintained.
View of responsible officials
We concur with the finding. The two exceptions noted were both unusual circumstances. With the
additional staff and implementation of the new financial system, we believe established controls will ensure
all expenditures are adequately supported and supporting documents are maintained.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-007
Type of finding: Significant deficiency in internal control and material noncompliance
Federal program: Head Start Cluster, Assistance Listing No. 93.600
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Reporting
Criteria
The requirements for reporting are contained in Section 200.328 which states unless otherwise
approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide
data elements for collection of financial information (at time of publication the Federal Financial Report
or such future, OMB-approved, governmentwide data elements available from the OMB-designated
standards lead. This information must be collected with the frequency required by the terms and
conditions of the Federal award.
Condition
During our test work over the Head Start program, we identified the annual Federal Financial Report (FFR)
is due 90 days after the budget end period. The budget end period for project id #G2-54027 was
October 31, 2021. However, the annual FFR was not submitted until January 17, 2023.
Additionally, the annual Real Property Status Report (Form SF-429) for all Head Start grants is due the
same time the annual FFR is submitted. The budget period end dates are October 31, 2021, resulting in a
due date of January 30, 2022 for the SF-429 report. However, the report was not submitted by UAMS until
January 30, 2023.
Cause
There were multiple accounts at UAMS that required reconciliation, resulting in an untimely process and a
delayed submission of the Annual FFR. UAMS failed to submit the Real Property Status Report until
requested by KPMG.
Effect
Failure to properly submit timely reporting submissions may prevent UAMS from being in compliance with
the requirements set forth by the Uniform Guidance.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that all required
reports are submitted timely.
View of responsible officials
We concur with the finding. The Head Start program has a dedicated financial manager position
responsible for the daily operations and oversee the activities of the various grants. The position was
vacant for a significant part of fiscal year 2022. Once the position was filled, the grants accounting team
worked with the new financial manager to reconcile the various grants under the Head Start program. The
reconciliation process took longer than anticipated causing the late submission of the FFR. The program
financial manager was not aware that the SF-429 report was due until it was requested by the auditors.
Management plans to hire an additional grants accounting staff member who will be dedicated to
monitoring the head start program for compliance with Federal and program regulations and ensure reports
are completed and filed timely.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-006
Type of finding: Material weakness in internal control and material noncompliance
Federal program: Medical Student Education, Assistance Listing No. 93.680
Federal agency: US Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Cash management
Criteria
The requirements for cash management are contained in Section 200.305 of Title 2 U.S. Code of
Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance), the A-102 Common Rule (§_.21),
0MB Circular A-110 (2 CFR section 215.22), Treasury regulations at 31 CFR part 205, program
legislation, Federal awarding agency regulations, and the terms and conditions of the award.
When entities are funded on a reimbursement basis, program costs must be paid for by entity funds
before reimbursement is requested from the Federal Government.
Additionally, Section 200.303 of the Uniform Guidance indicates that the nonfederal entity must
establish and maintain effective internal control over the federal award that provides reasonable
assurance that the nonfederal entity is managing the federal award in compliance with federal
statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance also
indicates that these internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” (Green Book) issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Office of Management and Budget (OMB)
has clarified that the references to the Green Book and COSO were only provided as best practices
and not requirements.
Condition
During our test work over the Medical Student Education Program, we selected a sample of expenditures
and cash draws/issued invoices to sponsors to verify the expenditures were paid prior to the date of the
reimbursement request. We also verified the cash draw was supported by a detail of expenditures that
reconciled. For the Medical Student Education Program, we noted 3 expenditures totaling $105,643 of our
sample of 40 expenditures totaling $556,930 were not paid prior to the reimbursement request.
Additionally, we noted 2 draws of our sample of 13 where the draw was over drawn. The total overdraw
was $69,800 of the total cash draws tested of $3,945,157. Additionally, we noted 9 draws were not
supported by a detail of expenditures that reconciled. The variance difference was $48,745.
Cause
UAMS did not maintain adequate support for cash draws causing unreconciled variances in the draw
request detail. Additionally, cash draws were not appropriately reviewed to ensure that the expenditures
were paid prior to the reimbursement requests.
Effect
Failure to properly complete cash draws may prevent UAMS from being in compliance with the
requirements set forth by the Uniform Guidance.
Questioned costs
$246 related to interest on the over draw
$48,745 related to unreconciled variances between the cash draw and the expenditure detail
$48,991 total questioned costs
Questioned costs related to the instances where the expenditure was not paid prior to the reimbursement
request are not determinable.
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure that program
costs are paid before a request for reimbursement is made. Additionally, we recommend that management
keep records of what expenditures make up each draw.
View of responsible officials
We concur with the finding. The instances where expenditures were not paid prior to the reimbursement
request was noted in the prior year audit and was corrected as soon as the finding was communicated to
management. The exceptions identified in the current year audit were prior to the control process changes
made by management to ensure all expenses are paid before reimbursement is requested. There were no
exceptions noted after the date of the change from the prior year audit. During the fiscal year, the grants
accounting office experienced a significant turnover in staff and leadership in addition to implementing a
new financial system. With the new director and staff in place and completing the implementation of the
financial system, we believe adequate controls have been established and are working properly to ensure
compliance with cash management regulations.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-008
Type of finding: Significant deficiency in internal control
Federal program: COVID-19 Education Stabilization Fund, Higher Education Emergency Relief
Fund, Assistance Living No. 84.425F
Federal agency: US Department of Education
Pass-through entity: Not applicable
Federal award year: May 7, 2020 to June 30, 2023
Compliance Requirement: Procurement and Suspension and Debarment
Criteria
UAMS follows the State of Arkansas purchasing policies and procedures. Competitive Bid Quote
Purchases ($20,000 to $75,000) require the requestor to price the good/service being purchased with at
least three vendor quotes. Amounts less than $20,000 require one vendor quote.
2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions
of the Federal award. Effective internal controls should include procedures to comply with the State of
Arkansas purchasing policies and procedures.
Condition
During our test work over the Education Stabilization Fund, Higher Education Emergency Relief Fund
program, we identified one of 17 procurements where only one vendor quote was obtained when the
purchase amount was approximately $21,400.
Cause
The original quote was less than $20,000 resulting in the requestor only obtaining the one quote as allowed
per the State of Arkansas procurement policies. Upon final invoicing for the service, the price exceeded
$20,000 and the requestor did not go back and amend the documentation with a sole source form
explaining the circumstances and obtaining appropriate approvals for the increased price.
Effect
Failure to properly document procurements could result in noncompliance with the State of Arkansas
procurement policies and procedures and/or the use of an inappropriate vendor.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure the State of
Arkansas procurement policies and procedures are adhered to in the event the original vendor cost
increases resulting in the procurement requiring additional justification/documentation.
View of responsible officials
In April 2022, a restructure of the procurement team was completed, and a new APO was appointed. In
July 2022, UAMS implemented a new financial system and updated procedures and processes around
procurement contracting. The new system allows all documents to remain as attachments in the system
and available to reviewers and approvers at each step in the procurement process. Staff dedicated to
procurement contracting have been trained to ensure all required documents are provide in accordance
with State procurement laws.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-008
Type of finding: Significant deficiency in internal control
Federal program: COVID-19 Education Stabilization Fund, Higher Education Emergency Relief
Fund, Assistance Living No. 84.425F
Federal agency: US Department of Education
Pass-through entity: Not applicable
Federal award year: May 7, 2020 to June 30, 2023
Compliance Requirement: Procurement and Suspension and Debarment
Criteria
UAMS follows the State of Arkansas purchasing policies and procedures. Competitive Bid Quote
Purchases ($20,000 to $75,000) require the requestor to price the good/service being purchased with at
least three vendor quotes. Amounts less than $20,000 require one vendor quote.
2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions
of the Federal award. Effective internal controls should include procedures to comply with the State of
Arkansas purchasing policies and procedures.
Condition
During our test work over the Education Stabilization Fund, Higher Education Emergency Relief Fund
program, we identified one of 17 procurements where only one vendor quote was obtained when the
purchase amount was approximately $21,400.
Cause
The original quote was less than $20,000 resulting in the requestor only obtaining the one quote as allowed
per the State of Arkansas procurement policies. Upon final invoicing for the service, the price exceeded
$20,000 and the requestor did not go back and amend the documentation with a sole source form
explaining the circumstances and obtaining appropriate approvals for the increased price.
Effect
Failure to properly document procurements could result in noncompliance with the State of Arkansas
procurement policies and procedures and/or the use of an inappropriate vendor.
Questioned costs
None
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was not reported in prior year audit.
Recommendation
We recommend that management design and implement internal controls that will ensure the State of
Arkansas procurement policies and procedures are adhered to in the event the original vendor cost
increases resulting in the procurement requiring additional justification/documentation.
View of responsible officials
In April 2022, a restructure of the procurement team was completed, and a new APO was appointed. In
July 2022, UAMS implemented a new financial system and updated procedures and processes around
procurement contracting. The new system allows all documents to remain as attachments in the system
and available to reviewers and approvers at each step in the procurement process. Staff dedicated to
procurement contracting have been trained to ensure all required documents are provide in accordance
with State procurement laws.
Findings and Questioned Costs Relating to Federal Awards
Finding number: 2022-005
Type of finding: Material weakness in internal control and noncompliance
Federal program title: COVID-19 - HRSA COVID-19 Claims Reimbursement for the
Uninsured Program and the Covid-19 Coverage Assistance Fund,
Assistance Listing No. 93.461
Federal agency: U.S. Department of Health and Human Services
Pass-through entity: Not applicable
Federal award year: July 1, 2021 to June 30, 2022
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Charges to the HRSA COVID-19 Uninsured Program must adhere to the applicable terms and conditions of
the award. As described in the terms and conditions of the HRSA COVID-19 Uninsured Program federal
award, services not covered by traditional Medicare will not be covered under this program and services for
any treatment without a COVID-19 primary diagnosis are excluded, except for 1) pregnancy when the
COVID-19 diagnosis code may be listed as secondary; 2) hospice services; and 3) outpatient prescription
drugs.
Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and
maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and
the terms and conditions of the federal award.
Conditions Found
We selected a sample of 60 patient samples that had claims and payments from HRSA totaling
$1,311,291. We noted 3 patients from our sample that had claims and payments from HRSA totaling
$7,615 for which services for treatment did not meet the COVID-19 primary diagnosis criteria, and therefore
were considered unallowable activities.
Additionally, UAMS did not have adequate internal controls to ensure accurate diagnosis codes were
documented for the non-COVID-19 related services provided.
Cause
In discussing these conditions with UAMS, they stated that claims were not appropriately allocated
between reimbursable COVID-19 tests and non-reimbursable visits using a non-COVID-19 primary
diagnosis code and these claims were not effectively reviewed prior to submission to HRSA.
Effect
Failure to properly allocate services and use the proper diagnosis codes could result in unallowable
activities under the HRSA COVID-19 Uninsured Program.
Known questioned costs
$7,615
Statistical Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
A similar finding was reported in prior year audit.
Recommendation
We recommend that management review its current process for entering and reviewing diagnosis codes to
ensure proper diagnosis codes are documented for all services in accordance with the federal award
programs terms and conditions.
View of responsible officials
We concur with the finding. Fiscal year 2021 was the first time UAMS received funds for patient
reimbursements through a Federal program that was required to be reported on the SEFA. The fiscal year
2021 expenditures were audited during fiscal year 2023, at the same time fiscal year 2022 expenditures
were audited. The same exception was noted across both years and reported to management after the
close of fiscal year 2022. The HRSA program ended and UAMS is no longer billing for these services. The
charges and billing for the HRSA program was a very unique set of circumstances due to the pandemic. In
the future, if such a program were available that required a review of diagnosis against a certain set of
treatment and diagnostic charges, further program development of the IT systems will be put into place or a
manual review will be developed and implemented.